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IRS Asks Congress To Drop Cellphone Tax

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The IRS has asked Congress to abandon a 1989 law that taxes personal cellphone calls that are paid for by a worker’s company, calling the law “obsolete” thanks to the “passage of time, advances in technology, and the nature of communication in the modern workplace,” reports the WSJ.

SEE ALSO: Got A Company-Paid Cellphone? The IRS Wants To Tax Your Personal Calls

Last week, the IRS released a set of proposals for public comment that would have seen the 20-year old law—largely ignored by companies—more strictly enforced. It included proposals on how a company might determine the amount of personal calls being made, including one that set aside a flat 25 percent of the bill for such use. IRS Commissioner Doug Shulman insisted again that the proposals last week had been largely misunderstood. The IRS didn’t want to tax anyone any more for personal cellphone calls, just to simplify the law that allowed them to do so.

In a statement, CTIA President and CEO Steve Largent said, “We agree with the IRS that times have changed and that this law hasn’t kept up. A repeal of the archaic listed property rule is the most sensible and fair action to take on behalf of every American who uses their wireless device for professional and personal purposes…This would be a big win for wireless consumers.” Not to mention a big win for the wireless industry.

Jun 18, 2009 5:56 AM ET

No Mobile Taxes


Posted In: Legal, Regulatory, Mobile

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